S&P 500 FINANCIALS INDEX
| Value 2119.65 | Change 2.11 | % Change 1.0% |
The MLP index fell 1¼ to the 311s. MLPs are seeing a few worried investors selling over the confusion about the Gulf oil spill. Few MLPs, if any, are affected, but this news makes some nervous. The Dow Jones REIT jumped 4½ as it's trying to take out last 2010 high. Junk bond funds were higher, up to even loftier levels. The yield on the 10-year Treasury bond rose 3 basis points to 3.69%, still going sideways.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
Oil buyers are encouraged by the Gulf oil spill reducing oil supplies. The chart shows oil is up 5% since the enormity of the oil spill was recognized last week. Gold is running for its own reasons (nervous investors in Europe) & wants to challenge the highs reached late last year.
| CLM10.NYM | ...Crude Oil Jun 10 | ...86.68 | ... 0.53 .......(0.6%) |
| GCK10.CMX | ...Gold May 10 | ...1,185.20 | ... 5.10 .......(0.4%) |
OIL (ETF) --- 2 weeks
GLD (ETF) --- 6 months
Photo: Bloomberg
Consumer spending rose 0.6% in Mar, the most in 5 months. Inflation-adjusted spending on durable goods, such as autos, furniture & other long-lasting items, jumped 3.4%, the most since Aug. Purchases of non-durable goods increased 0.4%, & spending on services, which account for almost 60% of all outlays, were little changed. Because spending rose faster than incomes, the savings rate declined to 2.7%, the lowest level in 1½ years.
Consumer Spending in U.S. Rose by Most in Five Months
Photo: Bloomberg
The Greek bailout if getting more confusing with no end in sight. Germany will be at the center of a rescue plan, but it's all politics now. The € is below $1.32, an interim low, indicating confusion reigns.
Merkel Makes Public Case for Germany to Aid Greece
ECB Comes to Greece’s Aid by Waving Collateral Rules
EU Bets $146 Billion Greek Bailout to Avert Contagion
Speaking of junk debt, risky companies sold $33.7B of junk bonds in Apr, a record for Apr. Borrowers are rushing to sell debt before investors pull back from the riskiest securities. Moody’s says sales of new junk bonds may rise 10% in 2010 while investment grade sales drop 7%. The extra yield to own junk bonds instead of Treasuries rose 6 basis points last week, but it's still at a very narrow 149 basis points, unchanged from the end of Mar & down from 176 basis points at the end of 2009.
EU Bets $146 Billion Greek Bailout to Avert Contagion
Nothing special going on in the markets. The chaos about bailing out Greek debt & the spreading oil spill are not bothering traders. The path of least resistance is to take the markets high.
Dow Jones Industrials --- 2 weeks
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